R-Squared

A statistical measure indicating how well the strategy’s performance is influenced by broader market movements. It helps to assess the strategy’s dependence on market conditions. An R² of 0 means that none of the performance can be explained by the index used for comparison. An R² of 50 for example, suggests that approximately 50% of the strategy’s performance can be explained by fluctuations in the benchmark. Please check this forum post to learn about R-Squared.